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iMergent
Closes $3 Million Revolving Loan Agreement 20 April 2004, 07:00am ET OREM, Utah, April 20, 2004--iMERGENT, Inc. (AMEX: IIG - News) a leading provider of eCommerce and software for small business and entrepreneurs announced it closed on a $3 million revolving loan agreement with Zions First National Bank. The agreement allows iMergent to borrow up to 80% of qualifying receivables up to $3 million at prime plus 3%. Don Danks, chairman and chief executive officer, commented, "This loan agreement provides iMergent with liquidity and capital resources to finance our customers and continue our international expansion. Historically, we have financed our rapid growth by selling customer finance contracts at significant discounts ranging from 15% to 25% of the face value. As a consequence, we have also forfeited the ability to earn the 18% interest on those contracts. The Zions loan agreement should have a direct positive impact on our financial results by reducing significantly the number of customer contracts sold at a discount." About iMergent iMergent provides eCommerce solutions to entrepreneurs and small businesses enabling them to market and sell their business product or idea via the Internet. Headquartered in Orem, Utah the company sells its proprietary StoresOnline software and training services, helping users build a successful Internet strategy to market products, accept online orders, analyze marketing performance, and manage pricing and customers. In addition to software, iMergent offers site development, web hosting, marketing and mentoring products. iMergent typically reaches its target audience through a direct marketing effort to fill Preview Sessions, in which a StoresOnline expert reviews the product opportunities and costs. These sessions lead to a follow-up Workshop Conference, where product and technology experts train potential users on the software and encourage them to make purchases. For further information, please visit the company's web site at www.imergentinc.com. iMergent, Inc., and StoresOnline are trademarks of iMergent, Inc. Statements made in this press release that are not historical in nature constitute forward-looking statements within the meaning of the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. Such statements are based on the current expectations and beliefs of the management of iMergent and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Such risks and uncertainties include, without limitation, the Company's continued liquidity; the Company's maintenance of capital resources; the Company's continued International expansion; the Company's ability to reduce the number of its customer finance contracts at discounts; the Company's continued ability to establish profits; and the Company's ability to attract and retain key management and other personnel. For a more detailed discussion of factors that affect iMergent's operating results, please refer to its SEC reports including its most recent Form 10-K and Form 10-Q. The Company undertakes no obligation to update this forward-looking information. |
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